Data Center Industry in India is Set to Make Big Leap in 2020

The Indian data center industry is one of the buoyant industries in the world and the demand for this space is picking high across the country. This rising demand is driven by an essential shift in the way Indian people produce and consume data, with the rise in Internet users in the last few years. Considering reports, the country has currently 669 million Internet users. That is why companies are scrambling to meet that demand and making the country is one of the fastest-growing markets for the data center in the world.

Looking at industry reports, the data center market in India is expected to reach US$4 billion by 2024, growing at a CAGR of around 9 percent during the timeframe of 2018-2024. The large investments of local and international operators in major cities such as Mumbai, Bangalore, Pune, Chennai and Hyderabad are driving the market over the projected years. Also, the growing construction of hyperscale facilities with a power capacity of over 50 MW is accountable for the need of innovative data center infrastructure in the country.

The Growth of Indian Data Center Market

As per the industry experts, the data center in the country is growing at an unprecedented rate and the government’s Digital India mission has expedited this growth further. Also, with the evolution of digital technologies, Indian businesses, from large to small and mid-sized enterprises, are undergoing rapid digitization.

Moreover, the country is dominated by the colocation data center segment, which is the fastest area of growth for the data center industry. This growth is largely fuelled by global hyperscalers such as AWS, Microsoft, Oracle, Google that are requiring evermore space and capacity to support the Indian market demand. The segment is also benefitting from robust growth in companies seeking to relocate their own data centers within the colocation facilities.

Push for Data Center Market in India

The adoption and implementation of cloud-enabled services or applications are in its growing phase in India. Apart from this, the government’s initiative for data localisation is making an effort to the data center development in the country.

Today, there is an increased demand for IaaS, SaaS, and PaaS among enterprise customers in India implementing public and private cloud services. In 2018, the adoption of SaaS led the market with nearly US$850 million in revenue. In the same year, the central government has accentuated the significance of increasing cloud and data center investment in the Indian market.

Several large hyperscalers are preparing the grounds for major expansion within the Indian data center market, intending to further expand their new builds within colocation facilities and are seemingly showing interest to build their own facilities. Though, this year will see the global colocation companies such as NTT, Equinix, Digital Realty, and more will align their existing Indian businesses with a global footprint.

In brief, the integration of data localization and demand for low-latency cloud performance will enhance the footprint of data centers in India.

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